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International entered the compact crawler market, dominated for many years by John Deere and Cletrac/Oliver, with the International T-340, essentially a tracked version of the 340 Utility wheel tractor. A 135 ci 4-cylinder gasoline engine also powered the T-340. The standard transmission was a 5-speed, with either the Torque Amplifier 2-speed planetary reduction gear or the Fast Reverser forward-reverse gear set optional. When it was new in 1959, the T-340 was at the top of the compact class for hp, followed by the Case 310 Crawler, John Deere 430C and 440IC, and Oliver OC-6. The 1960 Allis-Chalmers H-3 and John Deere 1010C nearly equaled the International.

In 1961 International added the TD-340 diesel version, fitted with the same 166ci 4-cylinder engine as the 340 Diesel wheel tractor. The TD-340 competed with several other compact diesel crawlers already on the market: the Allis-Chalmers HD-3, Case 310E, Fiat 411C, and John Deere 1010C. The Oliver OC-4-3D was smaller and less powerful.

International T-340 Series A 1962

The T-340 series was upgraded for 1962 and designated the Series A. The main mechanical change was the use of a standard 5-roller track frame, with the original 4-roller version optional. Also the original 2-tone red and white color scheme was changed to a solid color, usually yellow for tractors destined for industrial use and red for agricultural tractors. In 1967 the T-340 series was replaced by the 500 series.